American Airlines Group (AAL)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 804,000 | 834,000 | 605,000 | 604,000 | 578,000 | 577,000 | 614,000 | 452,000 | 440,000 | 332,000 | 401,000 | 376,000 | 273,000 | 293,000 | 325,000 | 277,000 | 245,000 | 253,000 | 462,000 | 474,000 |
| Short-term investments | US$ in thousands | 6,180,000 | 7,638,000 | 7,841,000 | 7,696,000 | 7,000,000 | 10,005,000 | 11,447,000 | 11,041,000 | 8,525,000 | 10,900,000 | 12,121,000 | 12,108,000 | 12,127,000 | 14,243,000 | 17,625,000 | 13,762,000 | 6,655,000 | 8,031,000 | 9,351,000 | 3,102,000 |
| Total current liabilities | US$ in thousands | 24,295,000 | 25,532,000 | 24,610,000 | 24,993,000 | 22,062,000 | 24,380,000 | 24,316,000 | 24,590,000 | 21,496,000 | 21,970,000 | 22,770,000 | 21,866,000 | 19,006,000 | 18,938,000 | 21,521,000 | 17,333,000 | 16,569,000 | 16,584,000 | 18,000,000 | 19,213,000 |
| Cash ratio | 0.29 | 0.33 | 0.34 | 0.33 | 0.34 | 0.43 | 0.50 | 0.47 | 0.42 | 0.51 | 0.55 | 0.57 | 0.65 | 0.77 | 0.83 | 0.81 | 0.42 | 0.50 | 0.55 | 0.19 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($804,000K
+ $6,180,000K)
÷ $24,295,000K
= 0.29
American Airlines Group's cash ratio has shown fluctuations over the periods presented. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, improved from 0.19 as of March 31, 2020, to a peak of 0.83 as of June 30, 2021. This indicates that the company had a higher level of cash to meet its short-term obligations during that period.
Subsequently, the cash ratio began to decrease, reaching 0.29 as of December 31, 2024. The decreasing trend suggests that American Airlines Group may have been utilizing its cash for investment opportunities or operating activities, leading to a lower level of cash reserves relative to its short-term liabilities.
Overall, the cash ratio fluctuated within the range of 0.19 to 0.83 during the periods analyzed, indicating varying levels of liquidity for the company. It is essential for stakeholders to monitor these fluctuations to assess the company's ability to meet its short-term obligations and manage its cash effectively.
Peer comparison
Dec 31, 2024